Accounting Question

[Elizabeth Dodd]

On Friday 13 October 2006 08:55, Crimson Corelio wrote:
> Yeah, the idea of making it a transfer into an Income account occured to
> me.  But it's really not Income, right?  Because it shouldn't be increasing
> the value of my Assets or my Equity.  And the credit card transfer
> shouldn't be an Expense, because it's not actually decreasing my Assets.
>  Am i incorrect about how this should work in double-entry accounting?
>
> I can definitely make this work and balance just fine.  But it seems to me
> that that isn't the right way to do it
consider the similar problem in which you add 10% to your expenses when 
charging them out
then it would be income and expense
the difference from that is that you don't add anything to the expense

if you incur the expense and your employer doesn't reimburse you, how would 
you record it? I would think as an expense, which you hoped would be offset 
by income. Then you would have it correctly recorded when you wished to claim 
from the taxman.

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